BI says Indonesian business, manufacturing stayed expansive in Q2
Manufacturing PMI-BI fell to 51.43, but BI still expects it to rise to 52.32 in the third quarter of 2026.
Bank Indonesia recorded a stronger Indonesian business climate in the second quarter of 2026, with the weighted net balance of its Business Activity Survey reaching 12.97 percent, up from 10.11 percent in the previous quarter. The increase was supported by agriculture, construction, mining, and accommodation and food services during the religious holidays and school vacation period. Installed capacity use also rose to 73.80 percent from 73.33 percent. At the same time, manufacturing remained in expansion territory, with the PMI-BI at 51.43, though lower than 52.03 in the first quarter. The highest index was in machinery and equipment, followed by food and beverages and basic metals. BI expects business activity in the third quarter to remain steady, with the SKDU at 11.75 percent and the manufacturing PMI-BI rising to 52.32.